Question:
Over a recent 20 year period, what percent of pros investing in large companies "beat the market?
Answer:
94% of investment pros underperformed (see below), so 6% outperformed.
Questions to think about:
Why do you think investing professionals struggle to "beat the market"?
Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?"
Your friend says ""you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on the data above?
Source: SPIVA report, 2020
